Sayenko Kharenko

Draft

Exemption from taxes of owners of electric vehicles proposed

A group of Ukrainian MPs has registered the Draft Law On Amendments to the Tax Code of Ukraine Concerning Reducing the Cost and Increasing the Affordability of Individual Electric Transport in Ukraine. The new Draft provides for complete cancellation of value added tax on electric vehicles during their customs clearance. The document also provides for exemption of commercial activities using electric transport from value added tax, meaning taxi services, rental, leasing and customized transportation. The Draft proposes complete abolition of excise duties for electric cars in Ukraine. Earlier, in 2016, such excise duties were reduced to EUR 109 per electric vehicle. If the Draft is adopted by Parliament, the aforementioned benefits would be in effect until 31 December 2022.

Simplification of tax invoices automatic registration mechanism

The Cabinet of Ministers has proposed to Parliament that it adopt the Draft Law On Amendments to the Tax Code Regarding Tax Invoices Registration.

The Draft provides for application of the “silence procedure” principle. Thus, if a tax invoice is not automatically registered and a decision to refuse registration is not adopted within five days, such invoice is deemed to be registered.

Application of this principle will resolve problems that arise during operation of the tax invoices automatic blocking system.

The Draft Law On Amending the Article 201 of the Tax Code of Ukraine Regarding the Registration of Tax Invoices/Calculating Adjustments in the Unified Register of Tax Invoices was approved by the Cabinet of Ministers on 4 October 2017.

Legal regulation of crypto-currency status proposed

Draft Law No.7183 On Circulation of Crypto-currencies in Ukraine proposes to determine the legal status of crypto-currencies and legal framework for organization and activities of parties to crypto-currency transactions.

The Draft establishes that a crypto-currency is a program code (a set of symbols, numbers and letters) that is an object of property right, which can be used as means of exchange, information about which is entered and stored in a blockchain system as accounting units of the current blockchain system in the form of data (program code).

The Draft also defines such concepts as “crypto-currency stock exchange”, “crypto-currency transactions”, “party of crypto-currency transactions”, “owner of crypto-currency”, etc. General rules applicable to private property rights are also applied to crypto-currencies.

It is proposed to entrust public administration in the sphere of circulation of crypto-currencies to the National Bank of Ukraine. It is assumed that the state is neither liable nor reimburses the cost of a crypto-currency in case of its depreciation or loss for any other reasons. Moreover, the state does not guarantee and does not implement any measures to ensure the activities of online services for crypto-currency exchange. The parties to crypto-currency transactions can freely dispose of a crypto-currency, in particular, carry out transactions on crypto-currency change (exchange), exchange it for electronic money, currency valuables, securities, services, goods, etc.

Furthermore, the authors of the Draft want to oblige the parties of crypto-currency transactions, that is, crypto-currency stock exchanges, users of the blockchain system, owners of crypto-currency and miners, to store data on conducted transactions for 5 years.

The document also establishes that a crypto-currency stock exchange is obliged to monitor all transactions, to conduct identification and personification of parties of crypto-currency transactions pursuant to the procedure established by the NBU.

Income received by a crypto-currency stock exchange from the performance of crypto-currency transactions is subject to taxation in accordance with the requirements of current legislation. The Draft provides for definition of basic terms such as crypto-currency, crypto-currency stock exchange, crypto-currency basket, crypto-currency transactions, blockchain system, user of blockchain system, party of crypto-currency transactions, owner of crypto-currency, miner, mining and others. Violation of Ukrainian legislation on the use and circulation of crypto-currency entails civil, administrative or criminal liability.

On 12 October Draft Law No.7201 On Amendments to the Law of Ukraine on Citizens’ Appeals(regarding consideration of telephone and electronic appeals) was registered at the Ukrainian Parliament.

An electronic appeal can be submitted not only via e-mail but also by filling out a special form on official websites of state agencies and enterprises. It will be necessary to specify the e-mail address or other contact details in such an appeal in order to receive a response. The indication of an applicant’s full name is deemed as signing of the electronic appeal. There is no requirement for the appeal to be certified by an Electronic Digital Signature. There is also a proposal to establish that if an applicant uses obscene language, insults or calls to violence when appealing over the phone or at a personal appointment ending the appointment or hanging up on the call is permitted, and such appeal will not be considered.

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